Redfin Q1 2025: Slight Revenue Dip as Rocket Takeover Deal in Final Stages

Redfin, the American real estate brokerage and mortgage origination services provider, has released its first quarter financial results for 2025 ahead of a $1.75 billion acquisition by Rocket Companies.

Highlights include:

• Year-on-year revenues fell 2% to $221 million.
• YoY net losses widened significantly, from $66.8 million in Q1 2024 to $92.5 million in Q1 2025.
• YoY Adjusted EBITDA declined 9.4% to $32 million
• Gross profits remained flat at $70.6 million
• Real estate services gross profit fell 2% to $19.9 million

Glenn Kelman, CEO at Redfin, said:

"Redfin profits were at the high end of the guidance we gave investors in our last earnings call. The number of Redfin lead agents increased 32 percent year on year, and loyalty sales increased 40 percent year on year thanks to our new plan to pay agents entirely on commission."

Meanwhile, the company's mortgage attach rate reached 29%, a historical high for Redfin.

Rocket's impending acquisition of Redfin will bring together the United States' most-visited real estate brokerage website with its largest mortgage lender.

Kelman said:

“Since the March 10th announcement of Redfin’s agreement to be bought by Rocket, many Redfin employees, from agents to engineers, have been over the moon about Rocket’s vision of a home-ownership platform. We can’t wait to join Rocket and build the future of homeownership.”

Redfin recently joined Zillow in banning non-MLS listings from its feeds after the National Association of Realtors' rollback of its Clear Cooperation Policy.